The International Monetary Fund (IMF) has warned that artificial intelligence could dramatically reshape the global job market. IMF Managing Director Kristalina Georgieva described AI’s rapid rise as a “tsunami” sweeping through the workforce, transforming jobs faster than governments and societies are ready for. Speaking at the World Economic Forum in Davos, she urged policymakers and businesses to act quickly to manage the challenges and risks posed by AI.
According to IMF analysis, up to 60% of jobs in advanced economies and about 40% of jobs globally could experience significant change due to AI in the coming years. While some jobs will benefit, seeing productivity and wages rise as AI complements human work, many roles, especially those involving routine tasks, are at risk of automation.
Entry-level positions are particularly vulnerable. These roles, often the first step for young workers entering the labor market, involve repetitive tasks that AI systems can perform efficiently. This could make it harder for graduates and young professionals to secure meaningful employment and gain early career experience.
Middle-income workers are also likely to face disruption. Positions that do not see productivity gains from AI may experience stagnant wages, slower hiring, or even elimination, widening the gap between high-skill, high-paying jobs and others. Georgieva highlighted that, while a small share of workers already benefit from AI, about one in ten jobs in advanced economies, the majority could face uncertainty without proper planning.
The IMF chief stressed that governments are lagging in creating rules, safeguards, and social policies to manage this transformation. She urged policymakers, educators, and business leaders to act quickly to ensure that AI adoption is inclusive and equitable, minimizing risks to the workforce while maximizing productivity gains.
“AI is for real, and it is transforming our world faster than we are getting a handle on it,” Georgieva said. The warning serves as a call to action for nations to prepare for significant structural shifts in the labor market and to implement strategies that protect vulnerable workers while supporting adaptation to the new AI-driven economy.
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